RFP vs RFQ vs RFI Explained

If you are new to government procurement in Canada, one of the first challenges you will face is decoding the alphabet soup of acronyms that describe different types of solicitations. RFP, RFQ, RFI, ITT, RFSO, RFSA — each of these represents a distinct type of procurement process with its own rules, evaluation methods, and expectations for bidders. Understanding these differences is not just helpful; it is essential, because the type of solicitation determines how your bid will be evaluated, what information you need to provide, and what kind of contract will result if you win. This guide explains each type in plain language, with practical context about when and how each is used in Canadian government procurement.

Request for Proposal (RFP)

The Request for Proposal is the most common and versatile solicitation type in Canadian government procurement. An RFP is used when the government knows what outcome it wants to achieve but wants bidders to propose their own approach to achieving that outcome. This means that an RFP gives bidders room to be creative in their solutions, and the evaluation process considers both the quality of the proposed solution and the price. Evaluation typically uses a points-based system, with separate scores for technical merit and price, often combined in a weighted formula such as 70 percent technical and 30 percent price, or 60/40, depending on the procurement.

RFPs are commonly used for complex requirements where the quality of the approach matters as much or more than the price. Professional services engagements, IT system implementations, management consulting, engineering design, and research projects are all frequently procured through RFPs. As a bidder, your RFP response typically needs to include a detailed description of your proposed methodology, your team's qualifications and experience, a project schedule, references from past clients, and a detailed financial proposal. The level of effort required to respond to an RFP is usually significant, which is why bid/no-bid decision-making is so important — you want to focus your resources on RFPs where you have a genuine chance of winning.

Request for Quotation (RFQ)

A Request for Quotation is used when the government knows exactly what it wants and simply needs the lowest price from a qualified supplier. Unlike an RFP, where the evaluation considers multiple factors, an RFQ evaluation is typically based primarily or entirely on price, with a basic compliance check to ensure that the bidder meets minimum qualifications and can deliver the specified goods or services. RFQs are most commonly used for commodity purchases, standardized products, and straightforward services where the specifications can be precisely defined and the quality is expected to be consistent regardless of which supplier is selected.

Responding to an RFQ is generally simpler and less time-consuming than responding to an RFP. The government provides detailed specifications and asks you to quote a price, along with delivery timelines and any other commercial terms. The key to winning an RFQ is competitive pricing, because the technical evaluation is usually a simple pass/fail assessment of whether you meet the mandatory requirements. For businesses that sell standardized products or provide well-defined services, RFQs can be an efficient way to win government contracts without the heavy investment of proposal writing that RFPs require.

Request for Information (RFI)

A Request for Information is fundamentally different from an RFP or RFQ because it is not a solicitation for bids — it is a request for market intelligence. Governments issue RFIs when they are in the early stages of planning a procurement and want to understand what solutions are available in the market, what the approximate costs might be, and whether there are enough qualified suppliers to support a competitive process. Responding to an RFI does not commit you to anything, and receiving an RFI response does not commit the government to proceeding with a procurement or to giving any advantage to the respondents.

Despite the fact that RFIs do not lead directly to contracts, responding to them can be strategically valuable. Your RFI response helps shape the government's understanding of the market, and if your input influences the specifications or evaluation criteria used in the subsequent RFP or RFQ, you may have a head start in understanding what the government is looking for. RFI responses are also an opportunity to introduce your company and capabilities to the procurement team, which can be particularly valuable if you are trying to break into a new government market or sector.

Invitation to Tender (ITT)

An Invitation to Tender is similar to an RFQ in that it is primarily price-based, but ITTs are most commonly used for construction projects and other procurement where detailed specifications and drawings are provided and bidders are expected to price the work based on those specifications. In the construction context, an ITT typically includes architectural or engineering drawings, specifications, general conditions, and supplementary conditions, and the bidder's response is a completed bid form with pricing for the specified work. The evaluation is typically lowest-compliant-bid, meaning that the contract is awarded to the lowest-priced bidder that meets all mandatory requirements.

ITTs are the standard procurement method for most government construction projects across Canada, from small building renovations to major infrastructure programs. The bidding process for ITTs is well-established and follows industry conventions, including the use of bid bonds or bid deposits to ensure that winning bidders honour their bids. Construction businesses that want to work on government projects need to be thoroughly familiar with the ITT process, including how to read and interpret tender documents, how to price their bids competitively while maintaining adequate margins, and how to comply with the various administrative requirements that accompany construction procurement.

Request for Standing Offer (RFSO) and Request for Supply Arrangement (RFSA)

Standing offers and supply arrangements are procurement mechanisms used by the federal government (and some provincial governments) to pre-qualify suppliers for goods or services that are purchased on a recurring basis. A Request for Standing Offer asks suppliers to submit their prices and qualifications for a defined set of goods or services, and qualifying suppliers are issued a standing offer — essentially a pre-approved price list — that government departments can use to make purchases without going through a new competitive process each time. Think of a standing offer as an agreement that allows the government to "call up" your goods or services at pre-agreed prices whenever the need arises.

A Request for Supply Arrangement is similar in concept but slightly different in structure. A supply arrangement qualifies suppliers and establishes general terms and conditions, but individual purchases under a supply arrangement may involve a further competition among the pre-qualified suppliers. This means that having a supply arrangement does not guarantee you any business — it guarantees you a seat at the table when specific requirements arise. Both standing offers and supply arrangements are common in federal procurement for categories like temporary staffing, office supplies, IT equipment, professional services, and vehicle leasing. For businesses that sell goods or services that the government purchases regularly, establishing a standing offer or qualifying under a supply arrangement can be an effective way to build a steady stream of government revenue.

Dollar Thresholds and Trade Agreements

The type of solicitation used and the level of competition required often depend on the estimated value of the procurement. In Canadian federal procurement, contracts below certain dollar thresholds can be awarded through simplified processes or even sole-source arrangements, while contracts above those thresholds must follow competitive processes that comply with the Canadian Free Trade Agreement (CFTA) and international trade agreements like the Comprehensive Economic and Trade Agreement (CETA) with the European Union. Understanding these thresholds is important because they determine which opportunities will be publicly posted and how the evaluation process will work. As of 2026, the CFTA threshold for goods is $30,300, for services is $105,700, and for construction is $264,300 at the federal level, with different thresholds applying at provincial and municipal levels.